jmt, you posted twice, I'm responding twice to make sure you get the response you're seeking.
This is pretty straight forward. The condition of the home now is a moot point, the appraiser is going to be appraising based on the improvements you'll make to the home.
As for the type of loan you want to do, hands down the HomeStyle renovation loan is the way to go if the numbers you presented are accurate since you have the credit score.
The monthly PMI on a HomeStyle will be noticeably lower than the FHA counterpart and it doesn't have the 1.75% upfront mortgage premium that's financed (basically you lose $2161 in equity that you didn't need to).
The 203k would also work but it's not the best loan for someone with strong credit and some equity.
You can reach me via this website or directly (faster) at my phone number below or via my website.
Rob Weber | cell: 847.404.7006 | NMLS #641630 | RobWeber.com... more